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Real Estate National Key Facts > N7 FHA, VA, Conventional Loans > Flashcards

N7 FHA, VA, Conventional Loans Flashcards

1
Q

FHA stands for __________.

A

Federal Housing Administration

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2
Q

In an FHA loan, the lender is ________ against loss.

A

Insured

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3
Q

The FHA is regulated by:

A

HUD, the department of Housing and Urban Development

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4
Q

A borrower on an FHA loan pays an ________ to insure the lender against loss.

A

Mortgage Insurance Premium, MIP

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5
Q

An FHA appraisal is also known as a ________.

A

Conditional Commitment

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6
Q

FHA escape clause or FHA Amendatory Clause

A

The requirement for an FHA loan stating that unless the appraisal is equal to or greater than the sale price, the buyer may withdraw from the agreement.

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7
Q

FHA Loans are for _____to ______ family units.

A

1 to 4 family units

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8
Q

FHA Loans are for ____ occupied properties.

A

Owner

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9
Q

Do FHA Loans have prepayment penalties?

A

NO

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10
Q

The VA stands for _______.

A

the Department of Veteran Affairs

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11
Q

In a VA loan the lender is ______ against loss.

A

guaranteed

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12
Q

Certificate of Eligibility

A

The document issued by the VA stating that the veteran qualifies and the amount of the veteran’s guarantee or entitlement.

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13
Q

When a VA loan is paid off, the veteran’s eligibility is _____.

A

restored

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14
Q

VA Funding Fee

A

The Veteran pays this at the time of loan origination.

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15
Q

Certificate of Reasonable Value, CRV

A

Name for a VA Appraisal

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16
Q

The typical amount of down payment in a VA Loan.

A

0%, Zero Down, $0, Nothing, Nada, Zilch, Jack Shit.

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17
Q

The typical Loan To Value (LTV) in a VA Loan.

A

100%

18
Q

VA Loans are for _____ ______ properties.

A

Owner Occupied

19
Q

Do VA Loans have a prepayment penalty?

A

NO

20
Q

A loan with no FHA insurance or a VA guarantee.

A

Conventional Loan

21
Q

An uninsured conventional loan typically requires the down payment to be ____ of the purchase price.

A

20%

22
Q

Loan Fraud

A

Making false statements to obtain a loan.

23
Q

Three Ways Loan Fraud can occur:
a. ______________

b. ______________
c. ______________

A

a. Falsifying income or assets 
b. Providing gift letters from a private party when it is actually a loan 
c. Causing a lender to incur a higher loss than would have occurred if the lender had known all facts relating to a short sale.

24
Q

In an uninsured conventional loan, the insurance premium is abbreviated _____ or ______.

A

MI or PMI ( They are abbreviations for: Mortgage Insurance or Private Mortgage Insurance)

25
Q

Discount Points

A

An amount charged by a lender to increase the lender’s yield and/or lower the borrower’s interest rate

26
Q

One discount point = ________

A

1% of the loan in dollars.

27
Q

Origination Fee

A

A charge made by the lender to offset the cost of originating the loan.

28
Q

What are Discount points always based on?

A

The amount of the Loan

29
Q

An Assumed Loan or Assumption

A

The buyer takes over payments and responsibility for a loan.

30
Q

The process of re-writing an existing loan, substituting a new borrower and releasing the former borrower from of liability.

A

Novation

31
Q

A document given by the lender to a buyer who is assuming an existing loan to verify the loan terms is a _____ AKA _____.

A

reduction certificate or assumption letter

32
Q

The Primary Market is where:

A

Loans are originated

33
Q

Secondary Market

A

Market place where loans are bought and sold

34
Q

Warehousing

A

Gathering loans together for sale in the secondary market

35
Q

The process of selling a loan to another lender.

A

Assignment.

36
Q

A document executed by a borrower to certify the terms of a loan when a loan is sold to another lender.

A

Estoppel Certificate

37
Q

Loan Servicer

A

A company to whom a borrower makes payments and who processes the payments on behalf of the owner.

38
Q

What is FNMA?

A

Federal National Mortgage Association

39
Q

What is FHLMC?

A

Freddie Mac or Federal Home Loan Mortgage Association

40
Q

What does Fannie Mae and Freddie Mac do?

A

The buy loans on the secondary market.

41
Q

Government National Mortgage Association

A

GNMA or Ginie Mae (guarantees the timely payment of principal and interest payments on residential mortgage-backed security (MBS) instruments to institutional investors worldwide)

Real Estate National Key Facts (14 decks)

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